Building digital advantage through data connectivity: Cross-Border data flow and the evolution of regional trade

This study investigates how cross-border data connectivity enhances regional digital trade development in China using provincial panel data from 2013 to 2022 and leveraging the rollout of Cross-border E-commerce Comprehensive Pilot Zones as a proxy for institutionalized data capacity. The study conceptualizes cross-border data flow as a novel production input that reshapes comparative advantages in the digital economy. Findings reveal that improved data endowment significantly accelerates the transformation and upgrading of regional trade structures by stimulating stimulating e-commerce activity and expanding international market openness. The trade-enhancing effect of data endowment is stronger in regions with advanced technological infrastructure and higher human capital accumulation, reflecting the significance of absorptive capacity in realizing digital dividends. These results highlight the strategic influence of data infrastructure on driving digital globalization and provide policy insights for fostering inclusive and innovation-driven trade growth.